Is it a good idea to invest £1500/month solely into S&P 500 over the long term?
Asked 4 years ago
My investment plan spans 10 - 15 years. What would the risk level of me doing something like this be? Should I be diversifying more?
Andrew Moran
Wednesday, June 09, 2021
While the S&P 500 is the gold standard of indexes, investing solely in investment vehicles that mirror the composition and performance of the fund may be too risky.
The reason is that the S&P 500 it has become too tech-heavy. The problem? Many financial experts think tech is in a dot-com bubble 2.0.
Here is perhaps a sound strategy to adopt:
Vanguard 500 Index Fund ETF
- 06/09: $388.72
- YTD Return: +13.25%
- Yield: 1.40%
Vanguard High Dividend Yield Index Fund ETF
- 06/09: $107.40
- YTD Return: +18.35%
- Yield: 2.82%
If you really want to invest in the S&P 500, you could always do a 75/25 split.
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